Please create an account to participate in the Slashdot moderation system

 



Forgot your password?
typodupeerror
×
Government United States

Biden To Order Review of US Reliance on Overseas Supply Chains For Semiconductors, Rare Earths (cnbc.com) 196

President Joe Biden will direct his administration to conduct a review of key U.S. supply chains including semiconductors, high-capacity batteries, medical supplies and rare earth metals. From a report: The assessment, which will be led by members of both Biden's economic and national security teams, will analyze the "resiliency and capacity of the American manufacturing supply chains and defense industrial base to support national security [and] emergency preparedness," according to a draft of an executive order seen by CNBC. The text of the executive order is being finalized and the ultimate language could vary from the current draft. The White House also plans to review gaps in domestic manufacturing and supply chains that are dominated by or run through "nations that are or are likely to become unfriendly or unstable."

Though the order does not mention China, the directive is likely in large part an effort by the administration to determine how reliant the U.S. economy and military are on a critical group of Chinese exports. Biden said earlier this month that his White House is gearing up for "extreme competition" with China. The pending executive order is one of the administration's first tangible efforts to evaluate and shore up American business and defense interests through a thorough review of where, and from which countries, it receives key raw materials. Some of the commodities and components listed in the order included rare earth metals, a group of minerals used in the production of a variety of advanced technologies, including computer screens, state-of-the-art weapons and electric vehicles.

This discussion has been archived. No new comments can be posted.

Biden To Order Review of US Reliance on Overseas Supply Chains For Semiconductors, Rare Earths

Comments Filter:
  • by Tulsa_Time ( 2430696 ) on Thursday February 18, 2021 @12:53PM (#61076438)

    We are too reliant.

    Thanks... good night.

    • by what2123 ( 1116571 ) on Thursday February 18, 2021 @01:21PM (#61076590)
      Reliant only due to extortionary reasons. Supply chains are probably a bigger issue but the actual rare earth minerals and materials are almost all found in plenty under US soil. The biggest hurdle is price and that's mostly regulation costs. Nothing wrong with that in my opinion. We have it if we want it. Restoring those reserves will take a bit of capital and some time but in time of need it'll be quickly scaled up and out. We should exploit foreign reserves as long and as cheap as possible. It's almost ironic that the Repubs were praising our oil production being up and not "relying" on foreign oil. Yeah that's not good. We were exploiting their reserves and the cheap, low cost, of almost free. Without the guilt of labor-for-all-but-free pricing. Now we produce a ton of oil but it's still not staying here which is doubly-dumb but that's macro economics at scale.
      • Re: (Score:3, Insightful)

        by Rei ( 128717 )

        The US is further behind on processing than we are on mining, though it needs to improve on both. You're absolutely right, though, that it's not an issue of availability.

        About a month ago I made some investments in UCore and TMRC. Amazingly lucky timing, I was looking at them as a long-term play because the market forecasts for demand are way out of whack with reality, and the sector hadn't yet heated up as much as battery mineral resource sectors. Though the potential China overhang was additionally an ob

        • Yeah I was sort of including the processing/refinement part of it in the "supply chains being a bigger issue." Right now almost everything that is mined, hell a lot of fished and farmed good end up out of country to be processed before being re-imported. That is a serious problem to me even if it's "cheaper."
      • by tlhIngan ( 30335 ) <slashdot.worf@net> on Thursday February 18, 2021 @04:07PM (#61077378)

        Rare earths mining can be done with existing mining, environmental and safety regulations. In fact, it's actually happening right now because China refuses to export rare earth, so even the added cost still makes the US very competitive.

        And foundries are expensive - enough so that environmental regulations are a drop in the bucket because the foundry needs it anyways. If they can't discharge polluted water out (and foundries put out a lot of contaminated water), they can purify it - the equipment already exists and is required by the process anyways. Plus, the pollutants can be recovered and re-used - heavy metals like arsenic and such can be recovered and re-used.

        Where the US falters is in making cheap consumer goods, but that's not something that's usually a critical supply chain item. Critical products aren't typically the ones consumers buy.

        After all, the US makes N95 masks and other stuff domestically already, vaccines are produced in the US, etc. Those things are doing just fine even with all the regulations in place.

        Making a US made TV is probably a lot lower on the list of critical items. Domestic production of ICs is vital for things like defense and military where you want to ensure the chips aren't tampered with, for example.

        • Yes, all of it CAN be done, but why would anyone invest in the US right now to even build any of it.

          We used to have all of the tech here, there is a reason we shipped it overseas and itâ(TM)s not labor costs. Shipping costs a TON more per device than the labor does.

          The problem is that we donâ(TM)t have a government that wants to stimulate business.

          There are too many regulations and taxes and the majority of those are not environmental, theyâ(TM)re just in place to keep a massive government ap

      • by Cederic ( 9623 )

        It does feel the optimal approach for the US is drawing on foreign reserves at low cost while retaining the ability to bring production and exploitation of US resources up to scale swiftly if required.

        Until it's required, why consume the resources?

    • by hey! ( 33014 )

      The question is not *that* we are too dependent, but *how*.

      You need to identify and characterize threats and vulnerabilities. It makes a difference *who* you are relying on, and for what. Whether you are talking telecommunication processors or memory chips makes a difference, as does whether the widget comes from Japan or China.

      Whether you have alternative sources makes a difference too.

      • Re: (Score:3, Insightful)

        by DarkOx ( 621550 )

        And the reality is we already know all we probably need to about the 'how'. There are plenty of US industrial firms and various organizations under the Pentagon that have almost certainly done all that analysis work already for their needs. We could probably spend a few weeks identifying the most credible and qualified sources and just go ask them!

        Guys like Biden don't form task forces to do stuff, they form them to NOT do stuff. Its about CYA - "hey look I am taking the China problem seriously", and appea

    • by khchung ( 462899 )

      We are too reliant.

      Wrong. Americans were too cheap.

      Do you know how much more the stuff you bought would cost if America kept all those manufacturing and mining within the US instead of outsourcing them? How many Americans would like it to have everything cost more and, as a result, having to live a more frugal life?

      Just look at how much subsidies American farmers get every year. Imagine paying similar subsidies to factories and mines so they could keep operating. How much would it cost?

      The almost two decades of high econo

  • It's great to review the situation and all, but I doubt a politician can have much effect on a problem like this.

    • I'd say the New Deal, Lend-lease and the US economic performance during the Cold War suggest otherwise. In those cases, the Federal government was willing to pony up the cash needed. That might be tricky if Republican lawmakers decide to be obstructionist, and with a strong possibility of the House flipping in two years, it makes Biden's job a lot harder, but previous Administrations and Congresses have been able to push through pretty massive domestic industrial expansions.

    • by AmiMoJo ( 196126 )

      Actually Biden can do a lot about it by ending the trade war with China. China produces 80% of the world's rare earths and has been talking about cutting the US off with a trade embargo.

      • by Zak3056 ( 69287 )

        Actually Biden can do a lot about it by ending the trade war with China. China produces 80% of the world's rare earths and has been talking about cutting the US off with a trade embargo.

        China outproduces everyone not because of their reserves, but because mining is dirty and we've passed laws that make it more expensive to dig out of the ground than to import megatons of bulk material from overseas. If you "care about the planet" you might consider that this is a net loss, as the dirty mining is still happening, and now you're also burning shitloads of bunker oil to transport the materials halfway across the world, but most "caring about the planet" is just "virtue signaling" and "stuff w

      • There's a difference between producing and having. There are plenty of other countries that have a lot of rare earths, but no one has invested heavily in extracting them as China has. The U.S. has many deposits of its own as well (and probably a lot of unexplored deposits), though nowhere near the proven reserves of China, but it's far more economical to get them from overseas because labor is less expensive and the environmental regulations far less strict.

        Any Chinese embargo would only have short term
        • Re: (Score:2, Insightful)

          by AmiMoJo ( 196126 )

          Who is going to build a new mine and refinery, knowing that in a few years China will come along and crush them with cheaper imports anyway?

          The market isn't that big anyway, most of the manufacturing is not in the he US. It's just that what there is in the US is critical.

          • The government will if it deems it vital to the country's defense. They have the ability to put requirements into any projects to use locally sourced minerals and produced components if they want to, or the ability to impose tariffs if they really want to be stupid about it. If China wants to flood the market to drive down prices or even dump below production costs we should buy up as much as they're capable of supplying and thank the Chinese people for subsidizing materials for us.
            • by AmiMoJo ( 196126 )

              Exactly, it will require the mine to become taxpayer funded. Maybe worth it for the sake of national security, but painful either way.

    • It's great to review the situation and all, but I doubt a politician can have much effect on a problem like this.

      If an elected United States Representative, fail to fulfill their job title and role, then perhaps it's time we elect a new United States Representative, and make it damn clear as to exactly why the old one, is being fired.

      It's that simple. Citizens either give a shit, or they don't. Choose, and remember you still live in a Democracy.

      • by apoc.famine ( 621563 ) <apoc.famine@g m a i l . com> on Thursday February 18, 2021 @06:43PM (#61077924) Journal

        It's that simple. Citizens either give a shit, or they don't. Choose, and remember you still live in a Democracy.

        Lol, "it's that simple"?

        Have you not been paying attention for the last decade or so?

        Citizens can't even figure out if what they give a shit about is real at this point. How in the fuck are you going to get a majority to vote someone out when they can't determine how likely it is that Hillary Clinton has kidnapped children being raped under a pizza place? When they see Trump appointed judges laugh election lawsuits out of court and still show up in the thousands to storm the capitol?

        Citizens give a shit. The problem is that a whole lot of them don't know what the fuck they're talking about, and/or they don't know what to do to make things better. Or they can't, because they live in a gerrymandered district, designed to take away their ability to influence an election.

        If it was simple, we'd have fixed this shit by now.

    • Rezoning some areas to be industrial or allow mining.
      Negotiate Trade deals with more reliable countries to help source products.
      Annexing land that may be more abundant.
      Tax insensitive for those who buy American Sourced products
      Grants for research towards finding alternatives, or use what we have better. ...

      One of the big reason why the Electric Car is getting popular today, to a point where it isn't a joke anymore, was due to Tax Credit systems towards electric car makers. Allowing them to make and produce

  • Though the order does not mention China, the directive is likely in large part an effort by the administration to determine how reliant the U.S. economy and military are on a critical group of Chinese exports. Biden said earlier this month that his White House is gearing up for "extreme competition" with China. The pending executive order is one of the administration's first tangible efforts to evaluate and shore up American business and defense interests through a thorough review of where, and from which countries, it receives key raw materials. Some of the commodities and components listed in the order included rare earth metals, a group of minerals used in the production of a variety of advanced technologies, including computer screens, state-of-the-art weapons and electric vehicles.

    This is exactly what Trump did and he took a huge amount of flack for it. Maybe now that there is a (D) attached to the idea it will finally be viewed positively. Because in reality this should've happened a decade ago.

    • Trump's problem was that he went out of his way to antagonize people at just about every turn. He could have just gone through with most of them and kept his mouth shut about it and most people wouldn't have cared. Biden seems to realize that while you can't get everyone to like you, you don't need to go out of your way to give people (more of) a reason to dislike you.
  • Mining sucks. It's dirty and destructive. We have plenty of rare earth resources here in the states, but we don't really exploit those resources because someone else is willing to do the dirty work to do it. That's generally the best way to do it. If we need anything, it's more semiconductor foundries.
    • by PPH ( 736903 )

      Lots of our rare earth resources are in places like California, Nevada and Arizona. Places that will throw a hissy-fit if people try to dig up mountaintops.

    • Declaring that dangerous and dirty work should be done by poor, poorly educated, non-white workers toiling away out of sight and without environmental or safety controls is fully-consistent with our new President who, along with his family [bbc.com] members [nypost.com], have taken millions of dollars from China [realclearpolitics.com] (and other countries) in exchange for no visible work and having no known expertise in the areas involved, and is now supporting slavery and genocide [irishpost.com] as a cultural difference [news.com.au] when China does these things.

      For Joe, China ru

      • Geopolitics, man. Don't wreck your own shit when others are willing to wreck theirs for you.

        And your Trump astroturfing gets nowhere. He was on the Russian tit and fawned plenty over Xi. He's gone. Get over it.
        • by PPH ( 736903 )

          Don't wreck your own shit when others are willing to wreck theirs for you.

          Ah yes. The long tailpipe.

        • Nobody has paid me to provide a false sense of grassroots support for something, so no... no "astroturf" here

          As to the rest: Biden family entanglements and money from China is a well-documented historical fact and there are at least 2 federal investigations related to it. If those are shut down by the Biden admin, then by the Democrat rule of "Trump fired Comey", Biden will have to be impeached.

          As to the Trump-Russia stuff... Democrats used the House, the Senate, the FBI and the CIA and the State Department

  • Why no 3? Because we already are at 3.

    It's gonna be like Obama following Bush again: All hope and change, and the same foreign politics, and Guantanamo G
    gulag stays open, just with fewer silly antics and more turning the former crazy into the new "normal", so you are prepared for the next step with the next crazy that follows Biden, and will make Trump look like a sane guy.
    Been there, seen that

  • by Dan East ( 318230 ) on Thursday February 18, 2021 @01:39PM (#61076688) Journal

    This is in regards to Executive Order 13817 [federalregister.gov], right?

    The Secretary of the Interior [...] shall publish a list of critical minerals in the Federal Register not later than 60 days after the date of this order
    The United States is heavily reliant on imports of certain mineral commodities that are vital to the Nation's security and economic prosperity. [...] It shall be the policy of the Federal Government to reduce the Nation's vulnerability to disruptions in the supply of critical minerals, which constitutes a strategic vulnerability for the security and prosperity of the United States.
    [...]increasing activity at all levels of the supply chain, including exploration, mining, concentration, separation, alloying, recycling, and reprocessing critical minerals;

    https://www.nationaldefensemag... [nationalde...gazine.org]

    MP Materials, which operates the largest rare earth element mines in the Western Hemisphere, had a big week.

    It was one of three companies on Nov. 17 to receive Defense Department grants intended to return rare earth production to the United States. The following day it was listed on the New York Stock Exchange.

    The Pentagon awarded a Defense Production Act Title III grant worth $9.6 million to MP Materials so it can begin to refine the strategic minerals at its Mountain Pass, California, mine.

    Oh wait, that was Trump's order from 2017. I think it's funny seeing president after president doing the exact same thing (like Obama in speeches and in voting supporting a border wall with Mexico), but it is spun as good or bad depending on the political views of who is publishing the news.

    • Re:Rare earths (Score:5, Insightful)

      by HiThere ( 15173 ) <charleshixsn@@@earthlink...net> on Thursday February 18, 2021 @02:11PM (#61076834)

      A quick search, though, didn't lead to any reports about follow-up actions. Perhaps I didn't use the correct keywords.

      But my impression is that Trump issued a lot of orders that didn't have *any* follow-up.

      • In my post I cited a link to an article showing where the federal government provided money to three mines to re-open or expand their operations. That was a direct, tangible action.

        Here is a federal government report from 2019 that goes into great detail about specific minerals, including what percentage of that mineral is imported vs produced natively, calls to action, etc:
        https://www.commerce.gov/sites... [commerce.gov]

        Other direct actions include opening up federal lands for mining rare earths, and faster permitting t

  • by SirLanse ( 625210 ) <swwg69.yahoo@com> on Thursday February 18, 2021 @01:39PM (#61076696)
    They are not all that rare. The US has mines for these materials. They are just very dirty to process. We leave that for China. Our clean air and green party pushes have made it impossible to do the processing in the US. Methods that are clean, are not invented or VERY expensive compared to China. How much pollution are you willing to accept to have secure access to these materials? Are you more willing now that the president has a D? Is it bad only because the president has a D?
    • by HiThere ( 15173 )

      They're called "rare earths" because they were hard to isolate from other elements. Especially from each other. You're right, they aren't particularly uncommon. But easily usable concentrations of them are uncommon. And, yes, the US has a lot of known mines for the stuff that have been shutdown because it wasn't economic to keep them open. But re-opening those mines often wouldn't be all that easy.

  • by Gravis Zero ( 934156 ) on Thursday February 18, 2021 @01:56PM (#61076768)

    What we really need is tariffs on nations that extract rare earth metals using highly environmentally destructive processes. Yes, it's really just China but still. What we need is to enable the safe and environmentally friendly extraction of rare earth metals from places which exist right here inside the US.

  • This is WHY we were really in Afghanistan - it was about their rare earth deposits.

  • Biden to order review of U.S. reliance on overseas supply chains for semiconductors, rare Earths

    Let me save you some time, Joe: Earths are so rare that there's only one and we're currently living on it.

  • They are the agency that is supposed to stockpile Rare Earths.

    Oh wait, did we forget to take back the key from Trump when he left office?

  • People are still forgetting that there was a lanthanide metal mine in California. It was shut down because of the thorium content in the tailings.

    It all comes back to "Radiashun!" fears.

  • This is thirty years too late, we started offshoring manufacturing to the far east in the 80's because 'the free market'. Carl Icahn sold Motorola to the Chinese. Korea and Taiwan have been making the best government subsidised semiconductors cheaper and with more advanced technology for more than 30 years. As for the Chinese stealing our technology, they have been making better tech and sticking western companies labels on it for more than a decade. All of the electronics you own is made in the far east. M

Beware of Programmers who carry screwdrivers. -- Leonard Brandwein

Working...